FEATURE
Growing gains for
Chinese pesticide market
Efforts to modernise the Chinese agricultural sector should lead to continuing high levels of growth
in China’s pesticide market, reveals ARN’s Olivier Griscelli
T
he Chinese pesticide market is At ex-producer level, the market is expected volume inventories will still be cleared along
experiencing a unique phase of to reach US$2,300 million in 2007. This would the distribution channel.
development, with durable rates of allow it to overtake the French market, making
growth that should continue over the China the fourth largest agrochemical market Leaf folder infestation levels were very high in
coming years. This growth will be driven by after the US, Brazil and Japan. With an annual central and southern parts of China during the
China’s efforts to modernise its agricultural sector growth rate of over 10% in the coming years, first quarter of 2007. Infestation levels for other
and increase yields, which will involve growing boosted by the ongoing replacement of cheap insect pests, such as the brown plant hopper
better plant varieties and using more efficient toxic products with more expensive and (BPH) and the stem borer, were generally lower
pesticide products. As part of this effort, in
2007 the Chinese government will initiate its
Table 1 – Make-up of the Chinese pesticide market
programme to phase out several highly toxic
pesticide active ingredients (ais), in order to
2006 value in US$m Domestic International All
meet international standards for food safety and
(retail level) products brands products
pesticide residues. Both central and provincial
Value % Value % Value %
governments are also engaged in sustaining Insecticide 921 50.9% 188 30.8% 1,109 45.8%
the development of the agricultural sector by
Herbicide 466 25.7% 242 39.7% 708 29.2%
allowing farmers’ incomes to grow, encouraging
Fungicide 398 22.0% 163 26.7% 561 23.2%
the migration of workers from rural to urban
Seed treatment 26 1.4% 17 2.8% 43 1.8%
areas, and gradually shifting the sector towards
Total 1,811 610 2,421
intensive agriculture.
From 1996 to 2003, the value of China’s pesticide
market decreased due to unfavourable climatic efficient products, the Chinese agrochemical than in previous years. Although the infestation
conditions, relatively low farmer incomes and market is on course to overtake the stagnating of white BPH species has been reported as being
price deflation caused by over-production. Then, Japanese market, which is worth some more serious than in previous years, it tended to
in 2006, the Chinese government cancelled the US$2,800 million, by 2009. be localised to a few southern provinces. Overall,
agricultural tax, allowing farmers to enhance insecticide treatments are forecast to increase in
their incomes and invest in new plant varieties Insecticides account for 45.8% of all value by 8–10% a year, due to both an increasing
and purchase more efficient pesticide products. pesticide inputs in China (at retail level). number of applications and a higher cost of
In addition, since 2004, more favourable climatic Rice and vegetables are the largest crop treatment for leaf folder.
conditions, combined with unprecedented markets for insecticides, accounting for
levels of damage to rice crops, have boosted 34% and 29% of the insecticide market Herbicides account for 29.2% of all pesticide
the application of pesticide products. This led to respectively. Starting in 2007, the leading applications, with herbicide applications forecast
pesticide sales growing by an average of 10% a insecticide methamidophos, together with to increase by 12–15% a year. Non-selective
year between 2004 and 2006. three other highly toxic organophosphorus herbicides, which currently represent 27.1%
insecticides (monocrotophos, parathion-ethyl of all herbicide applications, should benefit
The Chinese agrochemical market was worth and parathion-methyl), are being phased from the recent favourable climatic conditions,
US$2,421 million at the retail level in 2006 and, out and replaced with newer ais such as resulting in a predicted growth rate of more than
with an expected growth rate of 12–13%, is chlorpyriphos, protiophos, phoxim, DDVP and 20% in 2007. The dry conditions in northern
predicted to reach US$2,700 million in 2007. An amectin compounds. It has been reported that China (Yellow river, north east region) affected
inflation rate of 2–3% was reported during 2007 applications of methamidophos should initially soybean and wheat herbicide applications during
for domestic pesticide products and 4–5% for fall by 60–70%; although sales and distribution the first quarter. Heavy rain during the summer
international brands. of this ai will be strictly forbidden, some season and fall will favour herbicide applications
www.agrow.com  •   October 2007 
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